01—Abstract
Summary
Summary of the 10-Q filed May 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. reported its first-quarter fiscal year 2026 results, showing a 15% increase in total net revenue to $1.63 billiona, driven primarily by subscription growth.
While gross profit rose, income from operations saw a decrease due to a significant increase in operating expenses, notably a substantial rise in restructuring costs. The company generated strong operating cash flow of $564 millionb. Autodesk also highlighted a net revenue retention rate (NR3) slightly above 110% on a constant currency basis, indicating healthy customer retention and expansion.
Despite revenue growth, net income and diluted EPS declined year-over-year, largely impacted by higher operating expenses, including substantial restructuring charges of $105 millionc recognized in the current quarter. The company's balance sheet remains solid with $2.30 billion in cash, cash equivalents, and marketable securities.
Management pointed to continued investments in cloud, platform, and AI as strategic priorities, while also noting the transition to a new transaction model and annual billings, which impact billing and cash collection timing. Investors should monitor the impact of ongoing restructuring and investments in strategic growth areas.
02—Key points
Key Highlights
- Total net revenue increased by 15% to $1.63 billion compared to the prior year period, primarily driven by subscription revenue growth.
- Operating income decreased by 22% to $233 million, largely due to a 26% increase in total operating expenses, significantly influenced by $105 million in restructuring, other exit costs, and facility reductions.
- Net income decreased by 40% to $152 million, and diluted EPS fell to $0.70 from $1.16 in the prior year period.
- Net revenue retention rate (NR3) was slightly above 110% on a constant currency basis, showing improved retention and expansion from existing customers compared to the prior year's 100%-110% range.
- Operating cash flow remained robust, increasing by 14% to $564 million.
- The company repurchased $353 million of its common stock during the quarter, signaling a return of capital to shareholders.
- Remaining Performance Obligations (RPO) increased by 3% to $7.16 billion, indicating a strong backlog of future recognized revenue.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Autodesk kept $0.09.
- Revenue$1.63B100.0%
- Cost of revenue−$160.0M9.8%
- Gross profit$1.47B90.2%
- Operating costs−$1.24B75.9%
- Operating income$233.0M14.3%
- Interest, other & tax−$81.0M5.0%
- Net income$152.0M9.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 29, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.63B$1.42B | +15.2% |
| Cost of Revenue | $160.00M$137.00M | +16.8% |
| Gross Profit | $1.47B$1.28B | +15.1% |
| R&D Expenses | $394.00M$346.00M | +13.9% |
| Operating Expenses | $1.24B$981.00M | +26.4% |
| Operating Income | $233.00M$299.00M | −22.1% |
| Interest Expense | $18.00M$18.00M | 0.0% |
| Net Income | $152.00M$252.00M | −39.7% |
| EPS (Basic) | $0.71$1.17 | −39.3% |
| EPS (Diluted) | $0.70$1.16 | −39.7% |
| Shares Outstanding (Basic) | 214.00M215.00M | −0.5% |
| Shares Outstanding (Diluted) | 216.00M217.00M | −0.5% |
05—Questions
Frequently Asked Questions
What was Autodesk's revenue performance in the quarter?
Autodesk reported a 15% increase in total net revenue to $1.63 billion for the three months ended April 30, 2025, compared to $1.42 billion in the same period last year. Subscription revenue was the primary driver of this growth.
How did profitability fare in this quarter?
While gross profit increased, Autodesk's operating income decreased by 22% to $233 million. This was primarily due to a significant increase in operating expenses, which rose by 26% to $1.24 billion, largely driven by $105 million in restructuring, other exit costs, and facility reductions. Consequently, net income declined by 40% to $152 million.
What is the company's outlook on customer retention and future revenue?
Autodesk's Net Revenue Retention Rate (NR3) was slightly above 110% on a constant currency basis for the quarter, indicating strong performance in retaining and expanding business with existing customers. The company also reported an increase in Remaining Performance Obligations (RPO) to $7.16 billion, representing a strong forward-looking revenue backlog.
What significant expenses or charges did Autodesk incur this quarter?
A notable expense was $105 million related to restructuring, other exit costs, and facility reductions, initiated to optimize the go-to-market organization and reallocate resources to strategic priorities like cloud, platform, and AI. Additionally, stock-based compensation expense was $230 million, a significant non-cash expense.
06—Continue